Wednesday, May 13, 2009

Correction Intensifies

The correction has obviously become more severe today, but as yet the damage is not enough to alter the intermediate term trend, although it was enough to intensify the drawdown in my account. I have sold some of my weaker positions to raise cash today, but am continuing to hold the stronger ones.

For now, the key is for the Qs and the Dow to find support above the 50dema. In particular the Dow needs to hold above 7939, or the trend could be in jeopardy.

We may see and extension of the correction into next week, but for now I continue to expect higher prices.

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